Consumer Behaviour Lecture Notes

Consumer Behaviour; Reflects totality of consumer’s decisions with
respect to the acquisition, consumption and disposition of goods,
services, time and ideas by human decision-making units over time.
It involves attitudes towards;
o Products/goods
o Services
o Activities
o People
o Ideas
It is a dynamic process
Can involve many people
Involves many decisions
Involves consumers’ feelings and coping
Broken up into 3 parts;
o OBTAINING – Purchase Activities
o CONSUMING – Use Activities
o DISPOSING – Disposal Activities
Gaining Consumer Insights
• Customer insights represent a deep understanding of customer needs
and the drivers of customer behavior at a level well beyond what
customers are able to articulate themselves.
• Leads to opportunities for creating solutions that are tightly linked to
the core drivers of human needs and behavior.
• Includes;
o Understanding stated or articulated needs of customers
o Identifying their unarticulated needs
Marketers Need To …
• Understand consumer comes first
• Understand, predict and influence consumer behavior
• Never underestimate the consumer
• Never assume consumers are the same as you
• Opinions as a consumer count
• Apply knowledge to personal branding
What Affects Consumer Behaviour?
1. Psychological Core
• Motivation, ability and opportunity
• Exposure, attention and perception
• Categorizing and comprehending information
• Forming and changing attitudes
• Forming and retrieving memories
2. Process of making decisions
• Problem recognition and search for information
Judgments and decisions
Post decision evaluations
Consumer’s culture
External processes/influences
Consumer diversity
Social class and household
Values, personality and lifestyles
Reference group and other social influences
Consumer behaviour outcomes
Symbolize who we are; external signs used to express our identity
Diffuse through a market – influence others decision making
Ethics and social responsibility
Who Benefits from study of Consumer Behaviour?
• Marketing managers
• Ethicists/advocacy groups
• Public policy makers/regulators
• Academics
• Consumers
Marketing Implications of Consumer Behaviour
• Developing/implementing customer orientation
o Segmenting market
o Profitability of each segment
o Characteristics of each segment
o Customer satisfaction at each segment
• Selecting the target market
• Product positioning decisions
o Positioning of competition
o Our positioning
o Repositioning existing offerings
• Products/services development decisions
o Consumers ideas for new products
o Additional/different attributes
o Brand naming
o Packaging and logo design
• IMC Decisions;
o Advertising objectives
o Words and visuals of ads
o Ad placement (when and where)
o Sales promotion objectives
o Effectiveness of sales promotions
• Pricing decisions;
o What the price should be
Core I
Motivation; an inner state of arousal that provides energy needed to
achieve a goal.
Motivated consumer is energized, ready and willing to engage in goalrelevant activity.
Outcomes of Motivation
• High effort behaviour
• Processing information and making decisions
o Desire to process information accurately
o Motivated reasoning
• Felt involvement;
o Enduring involvement; when we show interest in something over
a long period in time.
o Situational involvement; temporary interest in an offering /
activity / decision.
o Cognitive involvement; Interest in thinking and processing
information about something.
o Affective involvement; Interest in expending emotional energy
ad evoking deep feelings about something.
What Affects Motivation?
• Personal Relevance – The extent to which it has a direct bearing on
and significant implications for your life.
• Consistency with Self Concept – Our mental view of who we are; your
view of yourself and they way you think others view you.
• Values – Beliefs about what is right, important or good.
• Needs – An internal state of tension caused by disequilibrium from an
idea/desired physical or psychological state. (Maslow’s Hierarchy.)
• Goals – Outcomes that we would like to achieve.
• Perceived Risk – Extent to which the consumer is uncertain about the
consequences of an action.
• Inconsistency with attitudes – The extent to which new information is
consistent with previously acquired knowledge or attitudes.
• An internal state of tension caused by disequilibrium from an ideal or
desired state.
• Maslow’s Hierarchy;
o Physiological
o Safety
o Social
o Egoistic
o Self-Actualization
• Needs not always ordered in this hierarchy